In this study, I examine the relationship between early stage Corporate Venture Capital(CVC) investments and the innovation. Although investing in early stage ventures is considered to be more uncertain, there may be potential knowledge-based advantages that can be captured. Drawing from the organizational learning perspective, I propose that increasing early stage CVC investment enhances the innovativeness of these firms. I also posit that the knowledge of investees in the early stage can be relatively more accessible for investing firms as it is mostly intangible and not yet embodied in products. I analyze a panel of 91 U.S. high-tech firms in the 1993-2018 period and find empirical evidence suggesting a positive association between early stage investment and firm innovation, in the short-term. However, greater industry diversity of a firm’s CVC portfolio attenuates this relationship. Contrary to my prediction, it was found that greater investment experience in early stage is not sufficient to develop absorptive capacity in exploiting knowledge from other investment in early stage ventures. This paper contributes to literatures in CVC, organizational learning and firm innovation.